Pizza Hut 2014 Annual Report Download - page 104

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PART I
Properties
As of year end 2014, the Company’s Concepts owned approximately generally leased for initial terms of 15 or 20 years and generally have
900 units and leased land, building or both for approximately 7,775 renewal options; however, Pizza Hut delivery/carryout units in the
units worldwide. These units are further detailed as follows: U.S. generally are leased for significantly shorter initial terms with
shorter renewal options. Company-owned restaurants outside of
The China Division leased land, building or both in approximately China and the U.S. with leases have initial lease terms and renewal
5,425 units. options that vary by country. The Company currently has land,
buildings or both in approximately 875 units, not included in the
The KFC Division owned approximately 250 units and leased land,
property counts above, that it leases or subleases to franchisees,
building or both in approximately 1,075 units.
principally in the U.S., U.K., China and Mexico.
The Pizza Hut Division owned approximately 75 units and leased
The China Division leases their corporate headquarters and research
land, building or both in approximately 725 units.
facilities in Shanghai, China. The KFC Division and Pizza Hut Division
The Taco Bell Division owned approximately 550 units and leased corporate headquarters and a KFC and Pizza Hut research facility in
land, building or both in approximately 375 units. Plano, Texas are owned by Pizza Hut. Taco Bell leases its corporate
headquarters and research facility in Irvine, California. The YUM
The India Division leased land, building or both in approximately 200 corporate headquarters and a KFC research facility in Louisville,
units. Kentucky are owned by the Company. Additional information about
Company-owned restaurants in China are generally leased for initial the Company’s properties is included in the Consolidated Financial
terms of 10 to 15 years and generally do not have renewal options. Statements in Part II, Item 8.
Historically, the Company has either been able to renew its China The Company believes that its properties are generally in good
Division leases or enter into competitive leases at replacement sites operating condition and are suitable for the purposes for which they
without a significant impact on our operations, cash flows or capital are being used.
resources. Company-owned restaurants in the U.S. with leases are
Legal Proceedings
The Company is subject to various lawsuits covering a variety of Company brings claims from time-to-time relating to infringement of,
allegations. The Company believes that the ultimate liability, if any, in or challenges to, our intellectual property, including registered marks.
excess of amounts already provided for these matters in the Finally, as a publicly-traded company, disputes arise from time to time
Consolidated Financial Statements, is not likely to have a material with our shareholders, including allegations that the Company
adverse effect on the Company’s annual results of operations, breached federal securities laws or that officers and/or directors
financial condition or cash flows. Matters faced by the Company breached fiduciary duties. Descriptions of current specific claims and
include, but are not limited to, claims from franchisees, suppliers, contingencies appear in Note 18, Contingencies, to the Consolidated
employees, customers and others related to operational, contractual Financial Statements included in Part II, Item 8, which Note is
or employment issues as well as claims that the Company has incorporated by reference into this item.
infringed on third party intellectual property rights. In addition, the
10 YUM! BRANDS, INC. - 2014 Form 10-K
ITEM 2
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ITEM 3
Form 10-K